Accounting

Outsourced Bookkeeping Services Basics for Small Businesses

Posted on 09/01/2019

When it comes to running a business, a clear and detailed record of the history of transactions involved would be vital to the seamless and efficient functioning of the overall enterprise. It wouldn’t be an exaggeration to say that the survival of most businesses rely heavily on how these transactions are recorded and managed. Organizing these records can be done on paper, with the help of software or by employing of a hired hand. Without a proper bookkeeping system, a business can become vulnerable are susceptible to legal problems and cash flow issues.

Outsourced Bookkeeping Services Basics for Small Businesses

A smooth tax filing can only be asserted by a proper bookkeeping process. Business records are key ingredients without which sorting through the numbers would become messy and complex. Hence as an exercise of caution, it is important to keep the following information in the books:

Revenues and Expenses

Revenues, in general, refer to the money that the business receives from customers. This makes up the accounts receivables column in the book. Staying on top of the book would imply keeping it up to date and promptly sending out bills and invoices.

Keeping track of expenses is just as critical as keeping track of revenue.

In general, revenue and expenses constitute the most basic information in the book. Keeping a close check on them would prove to be highly critical.

Inventory

Inventories are prone to merchandise misplacement, theft, and other mishaps. It is highly critical for businesses to maintain a clean and clear record of inventories to prevent the occurrence of such events. Keeping inventory holdings to a minimum would help in better tracking of sales and trends. The numbers in the inventory should be periodically tested by physically counting the products.

Accounts Payable

The money that needs to go out to suppliers and the money that is due from customers come under the accounts payable column. Data that includes invoice dates, numbers, amounts, terms, dates and amount paid and/or due, client information and balances needed to be organized and managed properly. A good bookkeeping practice, particularly Accounts Payable, can make payments easier.

Payroll Expenses

If there is one part of the book that needs to be up to date at any given time, this will be it. Besides being up to date, accuracy and precision is also highly critical. All this will come in handy during the tax filing season. Procrastination and sidelining of these activities can result in severe negative repercussions.

Purchases

Purchases are used to track materials of all sorts and kinds that are purchased for the business. It is an essential variable when it comes to calculating the profit of the company.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services


What Are Bookkeeping Services, Exactly?

Posted on 17/12/2018

Businesses, regardless of size will at some point require bookkeeping services. All business owners would have come across the term “bookkeeping” number of times. From the very first instance, a business opens its doors and collects its very first dollar, the role of a bookkeeper would generally commence. Advisors, partners, and other well-meaning associates would have undoubtedly recommended and suggested bookkeeping services to help keep a company’s books and finances on track. Bookkeepers help produce financial records that give business accurate information about its financial activities. These records are critical to the future success of any business.

What Are Bookkeeping Services, Exactly

Bookkeeping Services and what they do:

Generally, bookkeeping service proposes a three-tiered approach to developing and maintaining the overall financial processes and management. The first tier is made up of the accounting software specialist, who tailors data to the specific needs pertaining to the business. Access to the software and reports will be accordingly provided.

The next tier is the full-charge bookkeeper. The basic roles and responsibilities of a bookkeeper are pretty straightforward: to track payables and receivables and help keep the business’s financial transactions documented. A full-charge bookkeeper can also manage payroll, handle deposits, create and maintain monthly financial reports, manage the ever-changing world of sales taxes as well as quarterly taxes and withholding.

Bookkeepers also reconcile bank statements to internal accounts and come in very handy during an internal or IRS audit. Between the accounting specialist and the full charge bookkeeper, there will be the need to create a set of checks and balances for the business.

Scrutiny and analysis of individual department spending will be carried out by the bookkeeper. This is where the third tier of bookkeeping comes in to play– the controller. The controller increases the company’s overall financial accountability and checks and balances. A controller reviews the bookkeeper’s ledger for accuracy while also maintaining the integrity of the accounting data file in the future so that adjustments can’t be made without approval.

Benefits of Bookkeeping Services:

The underlying structure bookkeeping services apply is what really makes will eventually make a difference in the end, regardless of their primary objective of ensuring the financial health of a business. Bookkeeping services implement—and sustain—an unswerving financial process that strengthens the health of a business and facilitates creating and encouraging uniformity in tracking, paying and reporting. The significance of this is immeasurable as it insulates a business from many costly and dangerous risks.

Another major the benefit of the bookkeeping process comes into play when the bookkeeper coordinates with the management of the business in order to sanction purchases and gather expense reports. This activity requires extreme organizational, management and math and interpersonal skills.

Bookkeepers also reduce the overall expenses of a business. Besides ensuring that the books are maintained properly they also help keep a close eye on waste and mismanagement of supplies and inventory. All these benefits come along with the extra time the business can save since internal resources will no longer need to try and perform these tasks.

Though there’s no doubt that a bookkeeping service can save a business both time and money, it must also be noted that the processes and consistency introduced by the service offered can increase the longevity and efficiency of a given business, rendering the organization profitable for decades to come.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services


Important Tax Changes for Small Businesses

Posted on 07/12/2018

Tax laws have been constantly changing over the years. However, it is safe to say that it’s been over 30 years since there has been any significant change. Tax Cuts and Job Reforms Bill that recently passed is certain to impact everyone from individual taxpayers to business owners. In line with the previous sweeping tax reforms, this new tax act is likely to foster a great deal of business for accountants. The ideal way for accountants to take advantage of this potential boon is to demonstrate an intimate awareness of all the different ways the TCJA affects the majority of small businesses.

Important Tax Changes for Small Businesses

1. 20% Income deduction for most Small Businesses

Congress didn’t want small businesses to miss out on the party either, but they simply couldn’t lower the tax rate either. So, in order to give small businesses a tax cut, Congress brought around a new tax deduction; the 20% Qualified Business Income Deduction. If the taxable income is less than $157,500 (for individual) or $315,000 (for married) taxpayers filing jointly, then the deductions are generally 20% of the net income of the business. If the taxable income is higher than these threshold amounts, then a deduction can still be availed but the limitations and exceptions will apply based on the occupation and wages.

2. 100% Bonus Depreciation

Depreciation is a tax deduction that facilitates the writing off of the gradual wear, tear and obsolescence of certain properties. Depreciation rules can be complicated, with varying types and degrees of deprecation on different schedules. For instance, many types of properties take as much as 39 years to reap the benefits of depreciation. Fortunately, the Congress introduced Bonus depreciation to speed up the process to muster tax savings faster. Then in 2015, the Congress shot up the Bonus depreciation deduction to 50% in the first year. Now, the new tax reforms bill bumps the deduction all the way up to 100%. It is likely to stay this way until 2023.

3. Retroactive Refunds

One chief tax benefit for business owners is retroactive tax refunds. Having paid taxes in 2017, 2016, 2015 — or possibly even 2014 — can earn a 3-year review of tax returns for missed tax savings. And making a cut in the 93% of business owners who have paid too much in taxes, one can qualify for a retroactive tax refund. Fortunately, this law was not changed in the tax reform bill.

4. Mortgage Interest Deductions

Mortgage interest deductions will continue to exist. But only few people will be claiming the deduction on their tax returns. Deductions can either be itemized individually or can take the Standard Deduction. Whichever method renders larger deduction is what would be considered for return. However, there was one key change to mortgage interest deduction. The deductions have now been limited to new mortgages of $750,000 or less – down from $1 million in 2017. As for the mortgages originating before 2018 of $1 million or less are grandfathered in and keep their mortgage interest deduction.

Why Velan?

We at Velan are equipped with skilled tax preparers possessing over a minimum of 7 years of experience in the domain of Taxation. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house tax preparer’s salary exclusive of his paid vacations, incentives and bonuses.

Not only do we regularly keep updated with the latest tax laws, but support high-end infrastructure which allows us to function as a virtual extension of our client’s team, while ably providing our cost-friendly services.

If you have any queries related to your tax returns feel free to contact us for detailed information, we will be glad to assist you.

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Tax Preparation , Taxation


Building a High Performance Bookkeeping Team

Posted on 12/09/2018

What great joy it is to celebrate our own achievements! But what greater joy when share our celebration with others! While individual goals are more straightforward to articulate towards, it takes tremendous effort to mould many minds towards achieving a common goal. All team efforts require voluminous amount of discipline and self sacrificing. In a world driven by “every man for himself”, team players are highly valued for their traits and attributes

Building a team is a continuous process that does not happen overnight. The values, commitments, responsibilities and deadlines involved must be shared by all the members of a team equally. Like a car in motion wherein the wheels work in unison towards a direction, so should a team drive towards its goal. Some of the practises that can be followed are discussed below:

Building a High Performance Bookkeeping Team

1. Conduct huddles and team building exercises to ensure collective responsibility:

As a leader, it is your responsibility to be on the watch out for signs of burnout among your team, especially during peak seasons. To avoid individual exhaustion, it would be highly critical to ensure that the team performs as a cohesive unit and the roles and responsibilities are uniformly distributed. Scheduling regular face-to-face sessions with your team will also help. Taking the team out for lunch or dinner as a token of appreciation can work wonders to boost their morale, and spirits. A team huddle at the beginning of the shift can help remind o targets and goals and can also be used as a platform to share best practices.

2. Summon Periodic Review for Revision of Goals and Targets:

It’s easy to get caught up in a whirlwind of day-today activities and lose sight of bigger picture. Hence, it would be a healthy practise to break down the goal into smaller and quickly achievable targets. This would instil a sense of accomplishment that would in turn drive towards the bigger picture. A clear integration of the smaller targets to goal would be vital to provide a roadmap.

Weekly assessment of targets and recalibration accordingly would help plot one’s position on the map and help forecast the following steps accordingly. Appreciation and encouragement when small targets met will help inspire more productivity.

3. Perform Assessment, Audit and Call for Training sessions:

Periodical assessment of employees and an audit on the quality of work will help flag down gray areas, if any. Some members may require an addition training session or a refresher session to amp things up a bit. Training sessions to keep the whole team updated with technologies and practises across the world will help in staying relevant. A report of the assessment should be able to help in the direction of moving towards the goal.

4. Device Democratic Decision Making in Special cases:

Generally it’s practical for the decision making to take place up the hierarchy and trickle down the pyramid. However, when the decision taken is to impact the whole team, it would be sensible to let the team have a say in it. This would not only employ delegation but also make the employees feel important. Being made part of the decision making process promotes a sense of significance. However, this exercise can only be carried out in special case scenarios. 

5. Advocate Knowledge Transfer and Learning:

In the fast paced world we live in today driven by innovation and technology it is very important to be constantly updated. Investing in just man power would eventually render the assets obsolete.  Encouraging learning and promoting training sessions to keep abreast with trending technologies will keep the resources from losing relevance. Knowledge transfer is also critical as it delivers a certain edge to the less experienced in handling certain scenarios.

Why Velan?

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services that otherwise generally slow you down.

Call us today! And be rest assured that your business needs will be taken care of with the utmost sensitivity and sensibility the work demands.

Phone: +1-860-215-4997
E-mail: info@velaninfo.com

Topics: Accounting


Top 5 Bookkeeping Tips for Small Businesses

Posted on 14/08/2018

Top 5 Bookkeeping Tips for Small Businesses

With the world having adopted a scientific outlook, there has been immeasurable progress in every area of learning. And with the paradigm shift of technology, the world has grown by leaps and bounds, and with it has grown the competition to make it big in the playground of life. And the rapid flow of progressive ideas has brought to the limelight many entrepreneurs who have changed the global scene with their bold outlook. It’s not enough to initiate anymore, what matters now is the consistency and innovation with which you keep your ideas is running. And for any start-up or small business to consistently grow, financial management is the crux to its pillar of growth. Some of the major constraints that constrict the growth of small businesses along the bookkeeping vertical are:

  1. Affordability of a full-time bookkeeper
  2. Loss of time and money in in-house accounting
  3. Increased overhead and operating cost
  4. Delay in tax filing & resulting penalties

Bookkeeping plays a pivotal role in the functioning of any business enterprise. On the whole, it encompasses various procedures and processes that are as complex as they are critical. So, it would be smart to always have someone competent in this area manage its affairs. Following are some tips that can help mollify the various convoluted intricacies involved in bookkeeping:

1. Maintain Separate Books for Personal and Business accounting:

Mixing both personal and business accounts is never a good idea. Each by itself is poised with varying degrees of challenges. Put them together and you can just forget about it.  Keeping separate accounts will also help you keep things organized, which in turn will help save both time and resources in the long run.

2. Plan and Prepare for Major Expenses:

Always plan ahead and hold a reasonable reserve of revenue for inventory, office supplies, repairs, and maintenance. It is wise to always have a few worse case scenarios worked out and be equipped with a comprehensive response plan at hand. By forecasting expenses and budgeting accordingly, you can worry less about the future.

3. Log Daily Records and Reconcile Bank Accounts Periodically:

As an old maxim goes, “A stitch in time saves nine”.  Keeping track of your bank records periodically will go a long way in saving time and stress during later stages. Going over your accounts on a daily basis and establishing a regular monthly reconciliation with your bank will give you a clearer perspective of where things stand.

4. Closely Monitor your Accounts Receivable:

Account Receivables is a metric that can both build and break businesses. Having a close eye on the inflow of revenue (A/R) is highly crucial for any business. Having clients owe you money by the end of a cycle is not the same as the money sitting in your account. So, monitoring account receivables and having in place a calendar like a system that can track dues, deadlines and schedule follow-ups will help to streamline the flow of Account receivables.

5. Go Cashless:

Paying in cash may seem pretty straightforward, but it has a number of drawbacks that can add more complexity to bookkeeping. Among other things, cash payments are more difficult to trace so it will be hard to keep track of company spending, and you run the risk of overstating your income. Additionally, without any records of purchases, monitoring write-offs will also be a challenge. Online banking, credit/ debit cards are preferable options.

The world is a global village now offers various dimensions of unimaginable help required to stay afloat. And while outsourcing is sometimes viewed at with negative connotations, it has gained pace with fast-growing companies of this world. One of the perks of global networking is the choice of seeking outsourced help, which has its many upsides. And with the availability of outsourcing of Bookkeeping firms, small companies should certainly consider it as an option to staysail in the rapid current of growth. They help keep track of the amount spent, where it was spent, and when it was spent. Benefits of outsourcing are manifold. Some of them are as follows:

  1. They help overcome financial challenges
  2. They help shift focus towards business growth
  3. They reduce the staff & setup fees
  4. They help in delivering on time, error-free records
  5. They help to stay on top of the books.

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:

  1. Bank Reconciliation
  2. Statement of Assets and Liabilities
  3. Accounts Receivable and Payable
  4. P & L Statements
  5. Payroll Services
  6. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Phone: +1-860-215-4997

E-mail: info@velaninfo.com

 

Topics: Accounting